Food Franchise Business · Getting Started

Surviving Your First Year

Getting Started with a Food Franchise

Survive the first year of operating your own restaurant business with flying colors! Although that first year is a critical one, there are many tips and techniques that you can use to get through from opening day to one year later. Don't be discouraged that many of the items in your initial business plan need to be changed and altered during the first year. It's those restaurants that stick to concepts and feel that they must stick to their business plan that don't last past the first year.

Expect the unexpected! The better prepared you are for any contingency that can come along the better you'll be able to deal with it. Many restaurant businesses fail because owners are unable to see that things can, and will go wrong. Be flexible in your planning and understand that the best plans should always be open to change.

Take your first year one step at a time. Stick to your business plan, however review your plan once every month and be flexible when you realize that you have to make some changes. You should, however, not stray too far from your original business plan or you may find yourself unsure of what your initial goals were in the first place!

Another good quote about the first year of a restaurant comes from Walt Sutton, a successful entrepreneur:

"The biggest mistake [first-time entrepreneurs make] is somehow believing that what appears to be a good idea will carry the day financially," says Sutton, who started four businesses during a 23-year period and wrote Leap of Strength: A Personal Tour Through the Months Before and the Years After You Start Your Own Business. "There are many, many good ideas that don't become financial successes. In the long run, if you want to make a business out of your idea, it's got to really make money."

If you find that during your first year of business you're losing money instead of seeing any profits, don't be discouraged. The first four to five years for any new business are the hardest, with many businesses, including restaurants, seeing no profit at all for this time. Don't become discouraged and give up your desire to own and operate your own restaurant. It's critical that you remain positive an upbeat about your business venture.

The first one to two years can be the toughest for any restaurant. When you open your restaurant with this fact in mind you have more chance of surviving this first year since you're aware of changes. For instance, if you find that your target market changes after your first open you doors you may need to be prepared to make some adaptations to your restaurant.

One of the most important things that you can do to ensure the success of your restaurant during the first year is to make sure that you have a solid business plan in place before you start your planning. Studies show that the more precise and solid your business plan is, the more focused you are and able to stay on track during this first year.

Good luck finding the perfect food franchise opportunity!

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